Striking the balance between human and capital resources has always been hard, but recent findings indicate that Australian businesses are moving towards more capital-intensive production.As innovations in automation become more widespread, many workers may be left out of a job, according to the Committee for Economic Development of Australia (CEDA). In the Australia's Future Workforce report released last month, 39.6 per cent of jobs have a high probability of becoming automated in the next five to ten years.

Succession planning has been highlighted as a vital process by firms overseas, especially in the United States. However, how important is it for Australian companies to put their own plans in place?The North American Securities Administrators Association (NASAA), for example, has made it mandatory for all state-registered investment advisors to have a business contingency and succession plan in an effort to avoid disruptions to businesses. This ruling protects the company from unexpected changes due to factors such as a sudden death or a database loss, as well as ensuring clients receive a consistent service. However, a Family Business Australia survey showed that only 20 per cent of family-owned businesses have a succession plan in place. Considering that family businesses represent around 70 per cent of all Australian firms, there is a considerable gap between the planning needed to ensure continued success and the amount companies are actually implementing. In Australia, succession planning has been bought to the forefront in many companies, according to Ben Power of the Chartered Accountants Association. With the baby boomer generation heading towards retirement age, firms are faced with the task of filling vital roles and preparing people to move into the strategic apex.